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Generating and Protecting Business Ideas

Generating and Protecting Business Ideas. AS Business Studies Unit 1. Aims and Objectives. Aim: To understand how entrepreneurs generate business ideas. Objectives: Describe advantages and disadvantages of knowing product or spotting a gap in the market. Analyse methods of generating ideas.

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Generating and Protecting Business Ideas

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  1. Generating and Protecting Business Ideas AS Business Studies Unit 1

  2. Aims and Objectives Aim: • To understand how entrepreneurs generate business ideas. Objectives: • Describe advantages and disadvantages of knowing product or spotting a gap in the market. • Analyse methods of generating ideas. • Evaluate methods of generating business ideas and conducting research.

  3. Starter • Think back to deciding on a business to write your business plans…… • How did you generate ideas about what your business should be?

  4. How do entrepreneurs decide on an idea? • Often base their decision on their own experience. • Could be previous job, good/service they are familiar with or a product . • Could be a hobby or interest. • Gap in the market.

  5. Business Approaches

  6. Product Led and Market Led Approaches Product Led • Having conviction and faith in the product, and not necessarily taking into account any market research. Market Led • Ideas which come from an analysis of the market.

  7. Sort Each into Advantages and Disadvantages of Product and Market Led Approach. • Entrepreneur good knowledge of product. • Good contacts in an established market. • Entrepreneur may have a good reputation in the market • Is there room in the market? • The entrepreneur may overestimate the size of the potential market. • Entrepreneur may not have the necessary skills, even if they are passionate • Idea is based on customer needs, which may improve chance of success. • Little or no competition in early stages. • Easier to market a new idea than to persuade people to buy an established idea • Entrepreneur will have little or no expertise in the product/service or market = mistakes. • Is the analysis accurate? • Competition may enter quickly and capture market.

  8. Product-led Approach Conviction and faith in the product, that it will do well in the market. The Firm The Customer

  9. Market-led Approach Ideas which come from an analysis of the market. The Firm The Customer

  10. Methods of Identifying a Business Opportunity • A combination of approaches is often the most successful.

  11. Market Research • Entrepreneurs will always carry out market research, usually on a small scale. • Discuss ways in which an entrepreneur could carry out market research. • http://www.bbc.co.uk/schools/gcsebitesize/business/marketing/marketresearchvid.shtml

  12. Market Research • Use business directories or yellow pages to identify competition in the area. • Use local maps to locate where competition is. • Use local and national data to establish a potential market. • Use small scale questionnaires or interviews

  13. Generating Ideas • Chose an industry. • Come up with an innovative product/service in that industry. • Create a short questionnaire/interview to judge your potential target markets’ views and opinions on your new product/service. • (Create objectives for questionnaire)

  14. Plenary • Discussion of the feedback received from questionnaires. • What did you find hard? • What did you find easy? • Did your questions tell you exactly what you wanted to know?

  15. Market Research Analysis • Analyse your market research data. • For each question you asked come to a conclusion. • Eg. People aged 16-19 did not want to buy our product, but those aged 12-15 did want to buy our product. Therefore this is our target market. • Discuss in groups what you found easy and hard about carrying out market research.

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